Page 5 - Intellectual Capitail Management

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measured or evaluated with hard, qualitative methods, which were custom

sanctified by time for decades. This figure also shows that we need new methodology to

evaluate a firm’s actual value accurately.

- Sources of innovation and strategic renewal: intellectual capital is the only

mechanism inside the company, which can renew itself. We shall not forget that this

asset is the base for learning and creativity. This can bring up new ideas or strategy what

influence the whole operation. Innovative thinking is the key to stay in business,

according to unpredictable and rapid environmental changes.

- Not just a “pool of human capital” interaction: as we have seen intellectual capital

can learn. This learning shows two basic cases

- learning from the past: these are the cases when we examine the different

consequence of an action in or outside the company, this is also called as

external knowledge, because it comes outside the collective intellectual capital

- Learning from each other: this is the case when individuals, working in the

same place transfer knowledge between each other. This is when common

knowledge becomes real intellectual capital, because that does not only reflect

to the outside, but learns and develops by itself.

- Relationship between human capital management and business results: according to

its previously listed attribute we can easily acknowledge intellectual capital’s connection

with business results. The more IC is used during operation, the more useful strategy
appears and the better it can be applied. This brings higher incomes, lower costs and

influences other figures of business results.

By : Enas Mekki Managing Intellectual & Human Capital